Smaller pension foundations

For many small and owner-managed companies, the pension foundation is the company’s own “insurance company”. By using a pension foundation as a pension solution, the company can allocate pension capital and influence investments and costs.

The company chooses to form a pension foundation for various reasons. 

Flexible savings

When the company’s earnings allow, the company may determine the rate at which capital is to be consolidated into a pension.

Discretionary capital management

The company is represented on the board of direction of the pension foundation, and thus can decide how the capital is to be invested.

Pension reallocation

By starting a pension foundation, the company can accumulate pension capital which can be reallocated between those who are covered by the foundation.

Discretionary withdrawal rate

The company determines when and how pensions are withdrawn and can choose the pace of withdrawal. Thus, there great freedom as to when the pension is withdrawn.

Re-borrowing - investment possibility

Subject to certain conditions, the company can re-borrow funds from the foundation and thus the pension foundation can become the company’s “own bank”.

Moving a foundation

A pension foundation may be moved to another company, provided permission is obtained from the County Administrative Board.

Generational change

A pension foundation also facilitates generational change.